Part 2: The Devolved Benefits

In
Part 1 of this consultation document, we
talked about the Scottish social security system overall. In Part
2, we would like to discuss powers over specific benefits which
will transfer to Scotland. We will refer to these as the 'devolved
benefits'. We understand that, when thinking about a new Scottish
social security system, many people will think first and foremost
about how this will affect the benefits that they currently
receive. That is why we want to be clear, in relation to all of the
devolved benefits, what we are considering and how we will take
people's views into account.

It may be helpful to bear in mind that the devolved benefits
only represent a part of the overall social security system in
Scotland.
DWP
will continue to administer a number of benefits in Scotland on
behalf of the
UK Government. There are
currently no plans for the following benefits to be devolved to
Scotland:

Sure Start Maternity Grants (which we propose should be
replaced by the
Best Start Grant)

Funeral Payments

Cold Weather Payments and
Winter Fuel Payments

Discretionary Housing Payments

Some powers in relation to
Universal Credit (i.e.to split payments between
household members)

The Scottish Government also proposes to introduce a new
Job Grant for young people, who have been
unemployed for more than 6 months, and who are entering the labour
market.

Notes for the above graphic

The diagram shows that UK Government currently spends around
£18 billion on social security benefits in Scotland every
year. The chart shows that the majority of benefits (85%) will
continue to be delivered by the UK government and 15% of benefits
will be devolved to the Scottish Government.

The
UK Government currently
spends around £18 billion on social security benefits in
Scotland every year. The diagrams below show that the devolved
benefits only account for about £2.7 billion or 15% of this
spending. The remainder (£17.9 billion or 85%), remains under
the control of the
UK Government.

As we have made clear in
Part
1 of this document, a safe and secure transition of payments is
our priority. Around 1.4 million people in Scotland will be
entitled to claim one or more of the devolved benefits. These
people must not be caught in the middle of a transition from
DWP to
the Scottish Government and they absolutely must be able to depend
on us to get it right and get their benefits paid to them on time,
every time.

Our first and guiding priority will be ensuring a smooth
transition for people receiving benefits, particularly disabled
people and carers. This will be reflected in the approach we take,
the changes we make and the timescales we set. In the sections to
follow, we will outline how each of the existing schemes currently
operates and then we will ask you - as users, practitioners and
community representatives - to tell us about the different ways in
which we can develop the existing schemes further and make
improvements.

We will continue to engage with users in various ways (for
example, via user panels, face-to-face events, bi-lateral meetings
with representative groups, round table discussions and digital
engagement). This will enable us to consider fully the potential
impact of policy decisions, in particular how the devolved benefits
interact with reserved benefits and the wider Scottish social
security landscape and related policies. It will also enable a
mature discussion about priorities and what will produce the best
outcomes given the tight fiscal environment in which we currently
operate.

We hope that you will see the questions in Part 2 as an
invitation - to actively take part in designing and shaping
Scotland's new, devolved benefits. As well as publishing this
document itself, we are running a series of events, to enable users
to meet with us and tell us more about their experiences, their
ideas and their ambitions for social security in Scotland. There is
more information about these events in the section, "
Responding to the consultation". We hope
that as many of you as possible will be able to join us and we look
forward to hearing your views.

Part 2 may be relevant to anyone with an interest in any of
the devolved benefits and we are keen to hear your views on our
proposals. Once you have considered this section you may also be
interested in Part 3, where we look at the over-arching framework
for the Scottish social security system. We would be grateful if
you could also take the time to read through and answer the
questions in that section as well.

Please note that discussion of the equality implications of
these benefits is set out in the Partial Equality Impact Assessment
(
EqIA) that is
attached as a separate Annex to the consultation
document.

6. Disability Benefits

Summary

In this section, we will seek your views on the operation of
the existing
UK-wide disability
benefits and ask you some questions which will help us plan the
transfer of powers over these benefits to the Scottish
Government.

The Scottish Government is committed to maintaining the
current level of disability benefit payments once the powers have
been transferred.

A secure and smooth transition is our priority, ensuring all
recipients continue to receive their benefits. Over the longer
term, we will reform aspects of the devolved disability benefits,
working in partnership with disabled people and the organisations
that support them.

Introduction

The Scottish Government will receive powers to provide cash
benefits for people with a disability, impairment or health
condition and their carers. These powers are currently delivered in
the
UK through: Disability
Living Allowance (
DLA),
Personal Independence Payment (
PIP),
Attendance Allowance (
AA), Industrial
Injuries Disablement Benefit (
IIDB) and
Carer's Allowance (
CA). We will also take
responsibility for Severe Disablement Allowance for those people
still receiving it. Although remaining reserved, benefits the
Scottish Government will be given the power to top up
employment-related benefits or tax credits such as Employment and
Support Allowance and Working Tax Credits.

An infographic showing key facts on disability benefits. The
infographic shows that 10% of people in Scotland receive disability
benefits, including DLA, PIP or AA. Of these, 24% are pensioners,
4% are children and 7% are working age adults. One in eight of the
working age adults receiving disability benefits are in work. SLA
is received by 6% of people and PIP is received by 2% of people.
The percentage receiving PIP will grow over time as more DLA
recipients aged 16-64 are reassessed for PIP. Attendance allowance
is received by 13% or people aged over 65 and 40% of people aged
over 85.

Carer's allowance is received by 2% of working age adults.
Severe disablement allowance and industrial injuries disablement
allowance are both received by less than 1% of people.

DLA,PIP and
AA are paid weekly to disabled people to help meet the
additional costs of living with a disability, impairment or
long-term health condition.
DWP is
gradually transferring people aged 16-64 from
DLA to
PIP. Once
this transfer is complete: people aged under 16 will receive
DLA, people
aged 16-64 will receive
PIP and
people who become disabled at 65 or over will receive
AA. Some people
aged 16-64 are still being moved from
DLA to
PIP.

To be eligible for
DLA or
PIP,
applicants must have personal care needs and/or difficulty with
walking because of physical or mental health issues.
AA is paid on the
basis of personal care needs only.

IIDB differs from the other disability benefits because it
provides financial support to people who have become ill or
disabled due to their work.
IIDB is
paid on a weekly basis to workers who are injured or who develop
certain "prescribed diseases" through work, such as certain
asbestos-related cancers. The amount paid varies according to the
degree of disablement but it must be above a certain threshold.
IIDB can
be claimed alongside other disability benefits.
Questions on
IIDB are
at the end of this section.

Over the past 12 months, we have gathered a wealth of
information, views and experiences on all aspects of ill health and
disability benefits from people who receive the benefits, people
who deliver them, and organisations that either represent
recipients or have in interest in what the benefits look to
achieve.

We will continue to engage, listen and develop policy and
practice that places our principles, including the commitment to
dignity and respect, at the heart of the process as well as
addressing the issues that we've been told about. We welcome
insights on any area of our work that relates to disability
benefits but especially: benefit coverage and eligibility criteria,
the assessment process, awards, benefit administration, advocacy
and support, whether disability benefits could be paid 'in kind' as
an alternative to cash, and alignment with other policy and
delivery areas. We will continue to consult and engage as we
develop and refine our policy proposals.

Options for devolved disability benefits -
DLA,
PIP and
AA

The broad purpose of
DLA,
PIP and
AA is to
recognise the impact of living with a disability or health
condition and the additional costs this can incur. Many people that
receive benefits have told us that they want these benefits to
continue to have this purpose.

The Scottish Government is committed to maintaining the level of
the disability benefits paid to individuals, once the powers are
transferred, and to raising them annually by at least the rate of
inflation, using the
Consumer
Price Index[30] as a starting point.

We will not change current
UK disability benefits
policy without good reason and where there is a clear consensus and
support for the existing arrangements. For example, we will
replicate the special rules for people with terminal illnesses
which establish an urgent approach to providing benefits without
the need for the standard assessment process.

In the short term, a secure and smooth transition to devolved
disability benefit payments, which ensures that transfer
arrangements are well communicated and every recipient continues to
receive their benefits, will be our priority. But we are committed
to improvements as soon as practicable. For example, a consistent
theme that has emerged from our engagement with people over the
past year has been that there should be a transparent and
easy-to-access process of application, assessment/consideration
[31], decision-making and award for people claiming the
benefits.

We want to make sure that the process from start to finish is
clear and accessible, and that people understand how and when their
claim will be dealt with. We are also looking at ways in which we
can help lower costs for disabled people and carers. One way of
doing this could be by looking to learn from the success of the
Motability scheme. We would like to offer recipients the option to
spend some their award on other services. For example, we have
heard how disabled people face higher energy costs and we would
like to offer discounted energy tariffs.

Additionally, we would like to explore whether more could be
done on adaptations to the home.
These would be wholly voluntary offers and recipients of
disability benefits would be free to continue to receive a cash
award if they wished. We envisage these options providing disability benefits
recipients with additional choices, rather than replacing access to
existing schemes that exist around adaptations and energy
measures.

We also have bold aspirations for the longer term. For example,
we want to ensure that disability benefits work as effectively as
possible with other devolved services such as health and social
care and housing, and to explore the potential for a 'whole life'
disability benefit that is responsive to people's needs at
different stages of their lives.

QuestionsThinking of the current benefits, what are your views on
what is right and what is wrong with them?

Disability Living Allowance

What is right with
DLA?
What is wrong with
DLA?

Personal Independence Payment

What is right with
PIP?
What is wrong with
PIP?

Attendance Allowance

What is right with
AA?
What is wrong with
AA?

Is there any particular change that could be made to these
disability benefits that would significantly improve
equality?

How should the new Scottish social security system operate
in terms of:

A person applying for a disability related benefit

The eligibility criteria set for disability related
benefits

The assessment/consideration of the application and the
person's disability and/or health condition

The provision of entitlements and awards (at present cash
payments and the option of the Motability Scheme)

The review and appeal process where a person isn't content
with the outcome

We want to make sure that the process is clear and accessible
from start to finish, and that people claiming devolved benefits
understand how and when their claim will be dealt with.

With this in mind, do you think that timescales should be
set for assessments and decision making?

Yes
No

Please explain your answers

Evidence

There will always be a need for medical and other evidence (such
as evidence from social care or the education service) to support
the application and assessment/consideration process for disability
benefits. We recognise that medical evidence, including people's
medical records must be protected. In Part 3 of this consultation,
we talk more about "
Protecting your personal information" and
discuss sharing information, between public sector organisations,
to support the delivery of social security services in
Scotland.

We are also highlighting this, in this section, because, sharing
information between public sector organisations could offer
significant advantages to the application process for Scottish
disability benefits. These advantages could include: reducing the
burden on applicants, as information could be used from other
public sources (such as
NHS Scotland) to
pre-populate application forms, and developing a more integrated
and efficient approach to delivering services.

QuestionsWhat evidence and information, if any, should be required
to support an application for a Scottish benefit?

Who should be responsible for requesting this information?

Who should be responsible for providing it?

Please explain why

Should the individual be asked to give their consent (Note:
consent must be freely given, specific and informed) to allow
access to their personal information, including medical records, in
the interests of simplifying and speeding up the application
process and/or reducing the need for appeals due to lack of
evidence?

Yes
No

If no, please explain why

If the individual has given their permission, should a
Scottish social security agency be able to request information on
their behalf?

Yes
No

If no, please explain why

Proposals for eligibility

Eligibility for disability benefits, as they are currently
structured, is determined by taking the care (or daily living) and
mobility needs of an individual as proxies for the impact of their
condition and the additional costs they are likely to incur. For
DLA and
AA, the criteria
are based on broad definitions of care, and for
DLA
mobility, whilst the criteria for
PIP have
specific descriptors relating to the impact of disability or ill
health. Awards for
AA are for
care/daily living only and there is no mobility component. Awards
for
DLA and
PIP can be
made for care/daily living needs arising from the impact of the
impairment and/or for mobility needs.
IIDB on
the other hand, is focused on where a person becomes injured or
contracts a condition, in addition to the disability or condition
itself.

Entitlement differs across the age range, and those under 16 (
DLA), of
working age (
PIP), and
over the state pension age (
AA), are entitled
to different benefits. There are also other rules for care home
stays and hospital stays, which determine how long people can stay
in these places before their benefits are suspended. For people who
have been certified by a medical professional as having less than
six months to live, special rules mean they automatically qualify
for some elements of
PIP,
AA or
DLA.

QuestionsDo you agree that the impact of a person's impairment or
disability is the best way to determine entitlement to the
benefits?

Yes
No

If yes, which aspects of an individual's life should the
criteria cover and why?

If no, how do you suggest entitlement is determined?

Currently there are only special rules for the terminally
ill but should there be others?

Please explain why

How could this be determined?

We are considering the feasibility of introducing 'automatic
entitlement' for disability-related awards. This means that people
with certain conditions, which meet the eligibility criteria
because their condition is particularly severe or it will have a
significant impact on the individual, would receive benefits
without the standard application and assessment. This is a complex
matter that would require consideration over the longer term, with
specific input from medical professionals and from people with
direct experience of conditions.

QuestionsWhat do you think are the advantages and disadvantages of
automatic entitlement?

Would applicants be content for their medical or other
publicly-held records, for example prescribing and medicines
information or information held by
HMRC, to be
accessed to support automatic entitlement where a legal basis
existed to do this?

Current
DWP
practice is to provide a separate and fast-tracked approach to
providing benefits to people with terminal illnesses. The process
focuses on speed and simplicity, with commitments within
PIP and
AA to process
cases though a separate and concise application process, to provide
benefits to people that are eligible within 14 days of application,
and to remove the need for a face-to-face assessment by
establishing the necessary information from
GPs.

QuestionsDo you agree that the current
UK-wide
PIP and
AA process for
supporting people with terminal illnesses is responsive and
appropriate? Yes
No
If yes, should this approach be applied to all
disability-related benefits for people with a terminal illness?
If no, how could the approach could be improved?
Should there be additional flexibility, for example, an
up-front lump sum? Yes
No
Please explain your reasons.

'Whole of life' approach

In the longer term, we want to make sure that our devolved
Scottish social security system is responsive to the different
needs that people will have at different times in their lives. We
have heard that transitions from one benefit to another (for
example, the move from
DLA to
PIP at age
16) can be challenging, and we are looking at options to improve
the process.

Before the introduction of
PIP,
DLA was
available for children and working-age adults, with largely the
same criteria in place for both age groups. Also, the eligibility
criteria for the lower and higher rates of
AA are largely
the same as the eligibility criteria for the middle and higher rate
care component of
DLA.

A single benefit across the age range could remove age-related
requirements for people to re-apply for a different benefit. For
example, it might not be necessary for everyone to apply for a new
or different benefit when they reach a specific age. A
whole-of-life approach would allow a more person-centred approach
to reassessments and potentially offer a secure and more flexible
benefit for disabled people.

QuestionsIn the longer term, do you think that the Scottish
Government should explore the potential for a consistent approach
to eligibility across all ages, with interventions to meet specific
needs at certain life stages or situations?

Yes
No

Please explain why

What would the advantages and disadvantages of a single,
whole-of-life benefit be?

Proposals for assessments

Different benefits have specific criteria in order to address
different issues. This is why the current
DWP
system adopts different approaches, in order to determine whether a
person is eligible or not and to make a decision on the level of
their award. For example, for
DLA and
AA, decision
makers in
DWP
make judgements based on the application form and other supporting
evidence. For
PIP a
face-to-face assessment by an independent professional using
detailed descriptions and 'points' is the norm.

We intend to design a Scottish assessment process which is
robust and person-centred, which treats people with dignity and
respect, and which embeds compassion and support into the system
and the day to day culture. That is why the Scottish Government
will look to reform assessment procedures, minimising the number of
face-to-face assessments where possible and ensuring assessments
work for service users. As we say elsewhere in this document (For
example, in the section on The User Experience in
Part 1) - modern
IT systems can
underpin a more sensitive approach to this, from the potential for
existing data to be shared, to online interactions that are
designed for ease of use and accessibility for applicants.

QuestionsCould the current assessment processes for disability
benefits be improved?

Yes
No

Please explain how

For those people that may require a face-to-face
assessment, who do you think should deliver the assessments and
how? For example, private organisation, not-for-profit
organisation, public sector body or professional from health or
social care.

What are the advantages and disadvantages of different
types of assessments? e.g. paper based, face-to-face, telephone

How could the existing assessment process be
improved?

Could technology support the assessment process to promote
accessibility, communication and convenience?

Yes
No

Please explain why

If yes, please explain what technology would be
helpful e.g. Skype, video conferencing

Proposals for awards

Scottish Ministers are committed to introducing long-term awards
for conditions that are unlikely to change, across all disability
benefits. This would remove the need for unnecessary
re-assessments, which are often distressing and frustrating for
people whose circumstances are unlikely ever to change, and for
their families. For such awards we could include the expectation
that if there is a change, the claimant has a responsibility to
inform the social security system. However, we need to strike the
balance between lengthy awards and ensuring we have a flexible
system that recognises the role of medical advances and that
conditions can fluctuate.

QuestionsIf the individual's condition or circumstances are unlikely
to change, should they have to be re-assessed?

Yes
No

Please explain why

What evidence do you think would be required to determine
that a person should / or should not be reassessed?

Who should provide that evidence?

Alternatives to cash

We know that people receiving disability benefits face higher
costs for many daily essentials as a direct result of the impact of
their disability. We are considering ways of providing optional
alternatives to cash payments which could help meet some of these
higher costs. Areas we are exploring include discounted energy
tariffs, which could also be appropriate for carers, and
adaptations to the home.

Careful consideration would be required as to how any
initiatives such as these complemented existing provision. However,
we are keen to explore ways of helping people reduce their costs,
or access services they may not be able to access at the moment.
Key to this would be making use of the Scottish Government's
collective purchasing power to create a range of good value
options. This is the model used in the Motability Scheme to provide
affordable leased cars, scooters and powered wheelchairs to
disabled people in exchange for their mobility allowance. The
individual's right to choose between cash and any alternatives
would be protected at all times.

QuestionsDo you think people should be offered the choice of some of
their benefit being given to provide alternative support, such as
reduced energy tariffs or adaptations to their homes?

Yes
No

Please explain why

What alternative support do you think we should be
considering?

Would a one-off, lump sum payment be more appropriate than
regular payments in some situations?

Yes
No

Please explain why

If yes, what are they?

What would be the advantages and disadvantages of such an
approach?

Mobility component

Receipt of the mobility component of
DLA and
PIP can
allow recipients to access other services, such as the Blue Badge
parking scheme, concessionary travel schemes and Motability.
Motability is a
scheme, run by an
independent charity[32] that enables disabled people to choose to use their higher
rate mobility component to lease a car, powered wheelchair or
scooter. Currently
DWP
diverts payments to Motability if requested to do so by a
recipient. The scheme is highly regarded by those who use it and
can often enable people to access employment and take part in other
activities they might not otherwise be able to do.

Those already receiving
DLA or
PIP with
the mobility component will continue to receive it beyond
retirement age, but new claimants of retirement age need to apply
for
AA which does not
contain a mobility component. This means that they cannot currently
access the Motability scheme. The Scottish Government is currently
considering how it might address this issue.

QuestionsShould the new Scottish social security system continue to
support the Motability scheme?

Yes
No

Please explain why

How could the new Scottish social security system support
older people with mobility problems not eligible for a mobility
allowance?

How could the new Scottish social security system better
support people of all ages with mobility problems who are in
receipt of a mobility allowance?

Additional support

Applying for and being assessed for disability benefits can
often be a challenging process for people with particular health
conditions and impairments. Even with an open and accessible social
security system, featuring clear advice and application processes,
some people will need additional support.

QuestionsWhat kind of additional support should be available for
people who need more help with their application and during
assessment?

Please also refer to the section in
Part
3 on Advice, Representation and Advocacy in relation to this
issue.

Alignment with other devolved services

Representative groups and people who claim disability benefits
have said we could get better at joining up with other devolved
services to share information already held to support their claims.
As we have made clear elsewhere in this document, this can only be
done where there is legislation underlying the collection of
information, which allows it to be used for the specific purposes
it is being requested for - for example, to support a disability
benefit application. In the longer term, we also wish to ensure
that the social security system works more effectively with other
devolved services with the person at the centre.

QuestionsHow could disability benefits work more effectively with
other services at national and local level assuming that
legislation allows for this e.g. with health and social
care, professionals supporting families with a disabled child.

How do you think this might be achieved?

What are the risks?

Industrial Injuries Disablement Benefit (
IIDB)

This section focuses on issues which apply specifically to
IIDB and
its supplementary allowances such as Constant Attendance Allowance
and the Reduced Earnings Allowance.

Some of the key legislation underpinning support for people who
have suffered ill health and disability as a result of their work -
employment, and some areas of health and safety legislation -
remains the responsibility of the
UK Government. However,
there are opportunities to use the powers we do have to make
significant improvements.

In our discussions over recent months, recipients and
stakeholders have told us about a range of issues and opportunities
with the current scheme. This includes:

People with a range of diseases and disabilities receive
IIDB.
Some recipients contract life shortening diseases, such as
asbestos related cancers. Some people have conditions which
improve over time or which have a less severe impact

Some stakeholders expressed the view that the awards given
through the
IIDB
scheme are inequitable. This is because the benefit is paid on a
weekly basis like a pension. Recipients suffering from terminal
diseases who only receive the award for a short time may receive
less overall than recipients who have less severe injuries or
illnesses

There is potential to better join up
IIDB
with wider disability benefits and services. Where appropriate,
people in receipt of the benefit could be offered support to help
them back to work, such as rehabilitation and training

Questions over the list of 'prescribed diseases' - some
people feel it is too restricted and focused on male dominated
heavy industries

Circumstances have changed significantly since the benefit
was introduced in 1946 - workplace health and safety has
improved, there is greater health and social care provision, and
disability and income replacement social security benefits are
available

QuestionsIf
DLA and
PIP help
meet the additional costs of disability, what is the role of
IIDB and
its supplementary allowances (Constant Attendance Allowance,
Reduced Earnings Allowance etc) in the benefits
system?

Please explain your answers

In addition to the issues set out above, please tell us:

What is right with the
IIDB
scheme?

What is wrong with the
IIDB
scheme?

Please explain your answers

Should different approaches be taken for people with life
limiting conditions compared to people with less severe
conditions?

Yes
No

What would be the advantages or disadvantages of such an
approach?

Are there situations where a one off lump sum payment would
be more appropriate than a regular weekly
IIDB
benefit payment?

Yes
No

What are they, and why? What would be the advantages and
disadvantages of such an approach?

People have also told us that the scheme should promote safer
work places, by linking it to risk based employer contributions and
by using data from the scheme to inform health and safety activity.
As we said at the start of this section, employment legislation and
key parts of health and safety legislation remain the
responsibility of the
UK Government, so we will
need to consider how to best address concerns about the scheme
affected by these areas. It is worth noting that the
UK Government plan to
review
IIDB as
part of their Green Paper on disability and employment.

QuestionsShould the Scottish Government seek to work with the
UK Government to reform
the
IIDB
scheme?

Yes
No

If yes, what should be the priorities be? What barriers might
there be to this approach?

Severe Disablement Allowance

Severe Disablement Allowance (
SDA) was
available to people unable to work for at least 28 weeks in a row
because of illness or disability. It was closed to new applicants
in 2001. The equivalent benefit available now is Employment Support
Allowance (
ESA)
which is not being devolved, and working age recipients of
SDA are
being transferred onto
ESA. It
is our understanding that by the time this benefit is devolved
there will only be a very small number of pension age recipients of
SDA in
Scotland. The Scottish Government intends to ensure that this group
of people who are still receiving this benefit when the powers are
transferred, continue to receive this level of award through
Scotland's social security system.

QuestionsDo you agree with the Scottish Governments approach to
Severe Disablement Allowance?

Yes
No

Please explain why

7. Carer's Allowance

Summary

There are around 759,000
[33] unpaid adult carers in Scotland who fulfil a vital role in
our society by caring for family, friends and neighbours,
including people with multiple and complex needs.

Caring can be a rewarding and positive experience for both
carers and the cared for. However, it is also associated with
poor psychological wellbeing and physical health, a higher risk
of poverty, and often restricts opportunities to participate
fully in society, including work and education.

The Scottish Government is committed to increasing Carer's
Allowance so that it is paid at the same level as Jobseeker's
Allowance. That is almost an 18% increase and eligible carers
will each get around £600 more a year. We will also
consider the introduction of a Young Carer's Allowance to provide
extra support for young people with significant caring
responsibilities.

We want to develop a Scottish Carer's Benefit which helps
deliver positive experiences and outcomes for carers and is
embedded in our wider carer's strategy. This has to be within the
resources available and integrate with the wider social security
system.

We will also consider the introduction of a Young Carer's
Allowance to provide extra support for young people with
significant caring responsibilities.

Introduction

Carers make an immense contribution to our society by caring for
family, friends and neighbours who are disabled or are in poor
health. There are around 759,000 unpaid adult carers in Scotland
providing care to one or more people - 17% of the adult population
- and an estimated 29,000 young carers in Scotland aged under 16
[34].

Between them, carers save the Scottish economy over £10.8
billion per year
[35]. However, only a small proportion of them - 67,050 - receive
Carer's Allowance to help them look after someone with substantial
caring needs. The Scottish Government is on record as having
acknowledged the contribution that all of our carers make and we
believe it is essential that they are supported in this role. The
devolution of Carer's Allowance provides us with an opportunity to
better recognise this through the benefits system and we are
seeking your views on how we can ensure that this happens.

Operation of the existing benefit

Notes for the above graphic

An infographic showing key facts on Carer's Allowance. It shows
that in 2014/15, £203 million was spent on CA in Scotland,
8.7% of the GB total which is slightly more than Scotland's
population share (8.5%). Carer's Allowance caseload has been
increasing steadily over the last decade, with 67,050 individuals
receiving it in November 2015. The majority of recipients (68%) are
women. The majority (64%) of claimants have been receiving it for
over two years, with 36% receiving Carer's Allowance for over 5
years. Over half (56%) of all CA claimants are aged 40 to 59.
Two-fifths claimants are entitled to CA but do not receive a CA
payment. This is because they are also in receipt of another
benefit, such as State Pension, JSA or ESA, which provide a higher
level of income.

Sources: DWP benefit expenditure by local authority from 2000/01
to 2014/15 and DWP tabulation tool. Not Caseload data related to
cases in payment

The current
UK Government eligibility
criteria requires a recipient to:

be aged 16 or over

spend at least 35 hours a week caring for a person who
qualifies for specified disability benefits
[36]

not earn more than £110 per week (after
deductions)

not be in full-time education

40% of people who are eligible for Carer's Allowance do not
receive it because they are also in receipt of another income
replacement benefit (known as the 'overlapping benefit rule') such
as State Pension, contribution based Jobseeker's Allowance or
Contributory Employment and Support Allowance which is paid at an
equivalent or higher rate. However, carers on lower incomes with an
'underlying entitlement' to Carer's Allowance may receive an
additional amount in the form of a premium or addition. This is
extra money included in the calculation of means tested benefits
such as Income Support and Pension Credit. People receiving
Universal Credit, who are also caring for 35 hours a week, may also
qualify for extra money (carer element). These additional payments
remain reserved to the
UK Government.

Carer's Allowance sits outside Universal Credit which also
remains reserved to the
UK Government, although
the Scottish Parliament will receive new flexibilities for the
frequency of Universal Credit payments and over housing costs for
people who rent their accommodation.

There are a number of rules relating to the stopping and
starting of Carer's Allowance. These include taking a break from
caring, travelling abroad, if the person being cared for goes into
hospital or residential care, or if the person being cared for
dies.

The
UK Government has imposed
a cap on the total amount of benefit that working-age households
can get. However, following a ruling by the High Court in November
2015, all of Carer's Allowance will be exempted from the benefit
cap. The
UK Government will
introduce the exemption by regulations.

Proposals for a future Scottish carer benefit

The
UK Government pays
Carer's Allowance at a rate of £62.10 per week. We believe
that it is unfair that the support carers receive in the form of
Carer's Allowance is the lowest of all working age benefits. We are
committed to increasing Carer's Allowance for everyone aged 16 and
over and in receipt of Carer's Allowance, so that it is paid at the
same level as Jobseeker's Allowance (currently £73.10 per
week for jobseekers aged 25 and over). That is almost an 18%
increase, and eligible carers will each get around £600 more
a year. The First Minister announced on 25 May 2016 that we will
also consider the introduction of a Young Carers Allowance, to
provide extra support for young people with significant caring
responsibilities. The Scottish Government is committed to
increasing Carer's Allowance to those looking after more than one
disabled child.

Our ambition is to develop a Scottish Carer's Benefit which,
through the new Scottish social security system, and although not a
payment for care, provides some financial support and recognition
for those who choose to, or who have had to give up or limit their
employment or study because of caring responsibilities. It will be
non-means tested. Although Carer's Benefit is, and will continue to
be, a vital component of household income, we do not view it as a
standalone policy. Our intention is to embed it in our wider
strategy for supporting carers set out in the Carers (Scotland) Act
2016. This twin-track approach will maximise the opportunity to
deliver positive experiences and outcomes for carers.

QuestionsDo you agree with the Scottish Government's overall
approach to developing a Scottish Carer's Benefit?

Yes
No

Please explain why

Proposals for the short to medium term

To deliver our carer ambitions we propose a comprehensive
package of actions covering the short, medium and long term, which
recognises that we cannot do everything at once and takes into
account existing financial constraints. This has been informed by
discussions with representative groups, in particular the Carer
Benefit Advisory Group, which includes National Carer
Organisations, frontline practitioners and
COSLA.

Scottish Ministers have already announced that they will
implement the increase in Carer's Allowance as soon as practicable,
taking into account financial, legal and delivery issues. There are
no exact timescales yet, but we will keep everyone updated. The
increase will apply to everyone in receipt of Carer's Allowance. It
will not include those who are receiving only a carer premium,
addition or element, as this remains reserved to the
UK Government.

We have already begun to explore a Young Carer's Allowance. We
are mapping financial and non-financial provision for young carers,
and considering our evidence on the particular issues for and needs
of younger carers. Some young carers are very well supported by
young carers' projects and other services. However, others continue
to face challenges to their health and well-being. The Carers
(Scotland) Act 2016 will open up new possibilities for young
carers. Young carers will, for the first time, have the opportunity
to have their own Young Carer Statement to identify needs and
support. We are determined that young carers can sustain their
caring role, if they so wish, while having fulfilling life outside
caring and access to opportunities that are the norm for other
young people. Being a carer should not be a barrier to education
and training, employment or personal development.

In the short to medium term
, we will also focus on improving the carer's
experience so that people are treated with dignity and respect, can
easily access help and advice, and feel that the application
process for Carer's Benefit is quick and user-friendly.

We will join up services more effectively so that carers can
access a range of carer support and that Carer's Benefit works well
with other devolved services such as health and social care,
employment support and reserved benefits This will provide a
foundation for our longer term aspiration that services should be
person-centred.

The
Carers
(Scotland) Act 2016[37] already makes provision for each local authority to establish
and maintain an information and advice service, including income
maximisation and education and training. We want carers to have the
same opportunities as everyone else and it is important we support
them to remain in work or study, if they choose, or return to work
when their caring requirements change or cease and they are ready.
Equally, we recognise that some carers are unable to work due to
the extreme intensity of their caring responsibilities. Employment
can have a positive impact on health and wellbeing and reduce
financial pressures. We are already committed to expanding the '
Carer Positive'[38] scheme for employers and employment will be a key issue for
consideration in developing a new Scottish Carer's Benefit.

In the short to medium term, we will also look at the potential
for alternatives to cash payments for carers to help reduce the
costs of caring, for example reduced utility tariffs, complementing
existing programmes and policies. These would be offered as a
choice, rather than being the only option and would require
exchange of some of the carer's allowance in return for an 'in
kind' benefit.

QuestionsDo you agree with our proposed short to medium term
priorities for developing a Scottish carer's benefit?

Yes
No

Please explain why

How can we improve the user experience for the carer (e.g.
the application andassessment process for carer's benefit)?

Should the Scottish Government offer the choice of
exchanging some (or all) of a cash benefit for alternative support
(e.g. reduced energy tariffs)?

Yes
No

Please explain why

What alternative support should be considered?

How can we achieve a better alignment between a future
Scottish carer benefit and other devolved services?

How can we improve the support given to young people with
significant caring responsibilities - beyond what is currently
available?

Proposals for the longer term

The
Scotland
Act 2016[39] provides flexibility to change the definition of a carer for
the purposes of paying a benefit
[40]. We propose that any such changes are taken forward over the
longer term. We are committed to working
collaboratively with carers in a measured and considered way, to
develop the policy in a manner that ensures the safe and secure
transition from the existing
UK benefits to new
Scottish arrangements. For the reasons set out above, we will also
be consulting separately, and in detail, on changing the definition
of a carer. This will include the rules relating to the starting
and stopping of Carer's Allowance. We have already held a wide
variety of conversations, meetings, events and focus groups with
users who have told us that:

Carer's Allowance gives recognition to the important role
that carers have in society

It should continue to be non-means tested and paid directly
to the carer

The assessment process is reasonably clear

The way that a carer is currently defined, for the purpose of
paying a benefit, limits capacity to study or work

It is unfair that Carer's Allowance is only received for one
person even if you are caring for more people

Many older carers find the replacement of Carer's Allowance
with the State Pension when they reach pension age unjust

Through our Carer Benefit Advisory Group, and its short-life
working groups, we have already embarked on the process of seeking
views on options for changing the definition of a carer and the
accompanying rules relating to the stopping and starting of the
benefit. We need to consider fully the potential impact of policy
decisions and what will produce the best outcomes for carers given
the tight fiscal environment in which we currently operate. This
programme of work will continue into 2017 and beyond.

QuestionsDo you agree with our proposed long term plans for
developing a Scottish Carer's Benefit?

Yes
No

Please explain why

Do you have any other comments about the Scottish
Governments proposals for a Scottish Carer's Benefit?

8. Winter Fuel and Cold Weather Payments

Summary

The Winter Fuel Payment is a universal, annual tax-free
payment made to pensioners to help towards their winter heating
costs. In 2014-15 (the most recent statistics), over 1 million
individuals received a Winter Fuel Payment in Scotland, with a
total expenditure of over £180m.

Cold Weather Payments are means-tested payments designed to
help those on low incomes meet additional fuel costs during
periods of cold weather. In 2015-16, there were an estimated
415,000 individuals eligible for Cold Weather Payments in
Scotland with 119,000 actually receiving a payment and a total
expenditure of £3.4m.

In this section, we will seek your views on what, if any,
changes could be made to Cold Weather Payments and Winter Fuel
Payments in order to tackle fuel poverty in Scotland more
effectively. The Scottish Government has always been committed to
reducing fuel poverty, which why we have allocated over half a
billion pounds since 2009, to make Scottish homes more energy
efficient, and we have provided assistance to over 700,000 of the
most vulnerable households in our society have, to help them heat
their homes affordably.

Last year, we launched our new flagship national fuel poverty
scheme - Warmer Homes Scotland. This new scheme, which is focussed
on the installation of a wide range of energy efficiency and
heating measures, is expected to help around 28,000 of the poorest
and most vulnerable households, including pensioners and fuel poor
families, across Scotland during its lifetime. Warmer Homes
Scotland has been designed to ensure that customers are not
disadvantaged because of where they live, so householders in Orkney
and the Highlands and Islands will receive the same high quality
service as those in the central belt.

Current arrangements

Notes for the above graphic

An infographic showing key facts on winter fuel payments in
Scotland. Around 1.1 million claimants annually since 2009/10. In
2014-15, 1,076,870 received a winter fuel payment. In 2014-15,
£184m was spent on WFPs in Scotland. This is 8.7% of total in
Great Britain, which is slightly more than Scotland's population
share of 8.5%. Just over half of claimants (55%) are women. One
fifth of claimants are aged over 80 and 27% are aged between 65 and
69.

The Winter Fuel Payment is a universal, annual tax-free payment
made to pensioners to help towards their winter heating costs
(though it is not tied to bills; recipients can spend it as they
choose). People in Scotland born on or before 5 May 1953 are
currently eligible for a tax-free payment of between £100 and
£300. Most payments are made automatically between November
and December. The age at which an individual becomes eligible
changes every year and is linked to on-going changes in the State
Pension Age.

In 2014-15 (the most recent statistics), over 1 million
individuals in Scotland received a Winter Fuel Payment, with a
total expenditure of over £180 million. Although the benefit
operates as a pensions top-up, rather than being targeted at those
in fuel poverty, the estimated impact on the rate of fuel poverty
for this amount of expenditure was about a one percentage point
reduction.

Since winter 2012-13, people living in the European Economic
Area (
EEA) or
Switzerland with a link to the
UK are potentially
eligible to receive a payment. From 2015-16, this was restricted to
countries where the average winter temperature is warmer than the
warmest region of the
UK (South West England,
where the average temperature is 5.6 Celsius).

Cold Weather Payments

Notes for the above graphic

An infographic showing key facts on cold weather payments in
Scotland. In 2014/15 the UK government spent £11 million on
Cold Weather Payments, of this £7 million was in Scotland. A
chart shows that annual expenditure is extremely volatile as it
depends on weather conditions. There is a peak in the chart due to
particularly cold weather in 2010/11.

Cold Weather Payments are means-tested payments designed to help
those on low incomes meet additional fuel costs during periods of
cold weather. Eligibility is based on receipt of certain benefits
(primarily Pension Credit and income-related benefits where there
is a disabled person or a child under five in the household).

Payments are made when local temperature is either recorded as,
or forecast to be, an average of zero degrees Celsius or below over
seven consecutive days. Recipients will get a payment of £25
for each seven day period of very cold weather between 1 November
and 31 March. Payments are issued within 14 working days of the
temperature trigger.

In winter 2015-16, there were an estimated 415,000 individuals
eligible for Cold Weather Payments in Scotland with 119,000
actually receiving a payment and a total expenditure of £3.4
million.

Options for Winter Fuel and Cold Weather Payments

The Scottish Government is committed to extending Winter Fuel
Payments to families with disabled children on the higher rate of
DLA and to
making early payments to households who live off the gas grid.
Also, because Winter Fuel and Cold Weather Payments are both
nominally fuel poverty-related benefits, we want to understand how
they can be used to tackle fuel poverty more effectively. Both the
independent, short-term Fuel Poverty Strategic Working Group and
the Scottish Rural Fuel Poverty Task Force are considering, among
other things, how these payments could be used to better tackle
fuel poverty in Scotland.

Both of these expert groups are due to report later this year
and their recommendations will inform a longer-term strategy for
tackling fuel poverty. As well as their recommendations, we would
welcome views on what, if any, changes should be made to either
Winter Fuel or Cold Weather Payments.

In terms of Cold Weather Payments, we are aware that the current
temperature threshold doesn't recognise weather conditions in
certain parts of Scotland, for example wind chill factor. We would
look to work with rural stakeholders and the Met Office to identify
trigger points more suitable to Scottish conditions.

QuestionsDo you have any comments about the Scottish Government's
proposals for Winter Fuel and Cold Weather Payments?

Could changes be made to the eligibility criteria for Cold
Weather Payments? For example, what temperature and length should Cold Weather
Payments be made on in Scotland?

9. Funeral Payments

Summary

The
DWP
funeral payment is a grant for people on certain low income
benefits who are responsible for paying for a funeral.

We see the funeral payment as one of the ways to help tackle
funeral poverty.

We want to reach more people with the funeral payment to
reduce the need for borrowing.

We want to create a more predictable benefit, so that people
can make better informed decisions when they are committing to
paying for a funeral.

We are seeking views on how you think this could be
achieved.

Funeral payments are for individuals on low incomes who need
help to pay for a funeral they are arranging.

There are well documented concerns about the existing funeral
payment. More information can be found in our publication on
Creating
A Fairer Scotland.
[43] We propose to set up a new benefit which is more streamlined,
predictable and better integrated with Scottish policy and
services. We want to make payments faster so that people don't have
to delay organising a funeral. The Scottish Government recognises
the impact of rising funeral costs on families on low incomes and
the long term impact this can have on their finances and how they
experience their grief. We want to reach more people with the new
funeral payment to reduce this burden.

In response to growing concern about rising funeral costs, the
Scottish Government commissioned a review to identify opportunities
for preventative work in relation to "funeral poverty" in Scotland
and the roles that different organisations should take in this. The
Funeral
Poverty Report[44], by John Birrell, chair of the Scottish Working Group on
Funeral Poverty, and Citizens Advice Scotland, and the
Scottish
Government response[45] were published on 3 February 2016. The report found that the
rise in funeral costs means that paying for a funeral can be a
significant financial shock for some and there is a substantial
shortfall between the cost of a funeral and what people can afford.
The funeral payment cannot solve all of these problems. Building on
the work in response to the review of funeral poverty, we will
publish a funeral costs plan to tackle issues relating to the
affordability of funerals. This will include considerations around
introducing a funeral bond to help people save for their own
funerals. A series of Ministerial round table events and a national
conference on funeral poverty will inform the funeral costs plan.
We have also set up a reference group to advise on the development
of the funeral payment.

Operation of the existing benefit

Notes for the above graphic

An infographic showing key facts on funeral payments in
Scotland. In 2014/15 the UK government spent £44 million on
funeral payments, of this £4 million was in
Scotland.

Sources: DWP Outturn & Forecast: Summer Budget 2015

The
DWP
funeral payment covers the costs for the purchase of graves and
burial or cremation fees. The amount awarded to meet these fees is
uncapped. The payment also covers up to £700 towards other
costs associated with a funeral, such as a coffin, a hearse,
funeral director fees, minister's fees and flowers.

In order to be eligible for a payment you must be in receipt of
one of the low income qualifying benefits and be considered
responsible for the funeral. In order to apply you must take
responsibility for the funeral and meet the
DWP
rules on your relationship with the deceased. An application should
be submitted within 3 months from the date the death was
registered, this needs to include evidence of the costs associated
with the funeral including receipts.

The amount awarded can be recovered from the estate of the
deceased. Any money put aside by the deceased to cover funeral
costs, eg life insurance, pre-paid funeral plans, is deducted from
the award. Deductions are also made for contributions, for example
from family members.

There is very little data available on the funeral payment and
it is difficult to make estimates going forward because, while we
have estimates for overall death rates, it is not possible to
predict the circumstances of the families who will be bereaved.

In 2014/15 there were 6,300 Scottish applications to the
DWP
Social Fund for a funeral payment and 4,300 of those resulted in an
award. The average
DWP
funeral payment for the
UK was £1,375.

Proposals for Funeral Payment: What should the benefit
cover?

Depending on what format the benefit takes, we may need to
decide which elements of a funeral are covered by the funeral
payment. We would also find it useful to have your views on what a
standard low cost funeral should include, to inform discussions on
funeral costs.

QuestionsWhich of these elements do you think should be paid for by
the Funeral Payment?

YES

NO

Professional funeral director fees - advice and
administration etc.

Removal or collection of the deceased

Care and storage of the deceased before the funeral

Coffin

Hearse or transport of the deceased

Limousines or other car(s) for the family

Flowers

Death notice in a paper/local advertising to announce
details of funeral (time and location)

Fees associated with the ceremony e.g. for the minister
or other celebrant

Order of service sheets

Catering for wake/funeral reception

Venue hire for a wake/funeral reception

Memorial headstone or plaque

Travel expenses to arrange or attend the funeral

Are there other elements that you think should be included
or explicitly excluded?

Yes
No

Please explain why

Proposals for Funeral Payment: Eligibility

The Scottish Funeral Payment will be for people on low incomes.
The current benefit uses an award of certain benefits to determine
that the claimant is on a low income. This means that the claimant
does not have to fill in information about their income and
administrative staff can easily make the necessary checks. At the
moment qualifying benefits are:

Income Support

Income-based Jobseeker's Allowance

Income-related Employment and Support Allowance

Pension Credit

Housing Benefit

The disability or severe disability element of Working Tax
Credit

Child Tax Credit (at more than the family element)

Universal Credit

In some cases, deciding who is responsible for a funeral among
family members is a matter of judgement. The
DWP
asks questions to find out whether the person who is applying for
the funeral is the responsible person and whether there is someone
else who could reasonably be expected to pay. We have heard that
the questions asked to determine whether someone is estranged from
the deceased are intrusive and distressing. The questions also make
the application form very long and claimants may not have access to
the information asked for, for example the financial status of
other family members.

We are looking at ways to make this process less intrusive or to
avoid having to make judgements about family relationships.

QuestionsHow can we improve the process for identifying whether
someone is responsible for the funeral and should receive the
funeral payment?

In terms of the Scottish Funeral Payment, are there any
qualifying benefits (e.g. Pension Credit) that you would add to or
take away from the current qualifying benefit list?

Yes
No

Please explain your answer

Proposals for Funeral Payment: Application window and
process

Claimants must make an application for a funeral payment within
3 months of the date on which the death was registered.

QuestionsIs the three month application window for a Funeral Payment
sufficient time for claimants to apply?

Yes
No

If no, please explain your answer and suggest an alternative
length of time in which a claim could be made

Proposals for Funeral Payment: Simplification

We have heard that the
DWP
funeral payment is complex and unpredictable. We are considering
ways to simplify and speed up the payment. Recognising that one of
the stresses caused in the process is delays in hearing about an
award decision, we aim to process applications for the new benefit
within ten working days of receipt of a completed application and
make payments as soon as practicable thereafter. We believe that
this will create more certainty for funeral directors, allowing
them to give appropriate advice and potentially eliminating the
need to take a deposit from those who make a successful
application.

Some ways in which we might make the funeral payment more
predictable are:

Paying a fixed amount to contribute to funeral expenses
rather than checking actual expenses with an upper limit. This
would not include the costs for disposal of the body by burial or
cremation, which would be dealt with separately

A decision based on certain conditions being met, under which
an claimant would be told that they would receive a grant at a
later date, once they have submitted evidence e.g. a funeral
director's bill

DWP
form DS1500 is used to identify people who have been diagnosed
with a terminal illness. It fast-tracks applications for benefit.
The form is used where a person is not expected to live longer
than six months. We could allow people who have been issued with
this form to apply for the funeral payment and receive a decision
in principle on their case before they die. This may help them
and their families to make plans

An on-line eligibility checker for claimants, so that
claimants can see whether they are likely to be eligible and what
they are likely to receive if they get a payment. Eligibility
checkers can be misleading if benefits are complicated

QuestionsWhat are your views on the options for speeding up and
simplifying the payment?

Proposals for Funeral Payment: Deductions

DWP
makes deductions for contributions to funeral costs, eg.
contributions from family members, funeral plans etc. We think that
it is right that money that is available for a funeral contributes
to the cost. However, we have heard that some claimants have been
disadvantaged when contributions from friends and family have been
deducted from the payment. We are therefore proposing that
contributions from friends and families are not considered in
Scotland.

QuestionsThe other funds which are deducted from the
DWP
funeral payment are listed below. What sorts of funds do you think
it is appropriate to deduct from a Scottish
FP?

Yes

No

Funds in the deceased's bank account

Funeral plan/insurance policy

Contributions from charities or employers

Money from an occupational pension scheme

Money from a burial club

Are there any other funds that you think are appropriate to
deduct?

Proposals for Improving take up

We know that there is a patchy awareness of the funeral payment
and that take up is low. It is important that people are able to
access and receive the support that they are entitled to and are
aware of the payment before they make decisions. We think that we
can improve take up of the funeral payment by ensuring that it is
promoted by services that people commonly come in to contact with,
for example, registrars and bereavement services.

QuestionsWhich services should promote awareness of the funeral
payment to ensure that claimants know about it at the relevant
time?

Are there any other points that you would like to raise in
connection with the new Scottish Funeral Payment?

10. Best Start Grant

Summary

This section will discuss the new Best Start Grant, which
will replace the existing Sure Start Maternity Grant.

The support provided through the Best Start Grant will play
an important part in reducing inequalities and will help close
the gap in educational attainment.

Our aim is to design a benefit that is easy to access and
that provides effective support to families at key transitions in
the early years, as part of a wider package of early years
support.

We will use this section to explore the important decisions
to be made in designing the new benefit and consider the various
options available.

We will replace the current Sure Start Maternity Grant (
SSMG) with a
new, expanded Best Start Grant (
BSG[46]). The new
BSG will pay qualifying
families £600 on the birth of their first child and
£300 on the birth of any second or subsequent children.
Qualifying families will also receive £250 when each child
begins nursery, and a further £250 when they start school.
The support provided is staggered and each payment has a different
focus for giving children the best start in life. For a family with
two children, the
BSG means £1900
worth of support over the period of their early years, compared to
£500 that is available to them now from the
SSMG.

The Scottish Government recognises that the earliest years of
life are crucial to a child's development and affect inequalities
in health, education and employment opportunities later in life. We
are committed to reducing these inequalities and aim to give every
child in Scotland the best start in life by identifying and
reducing the factors that cause inequality at an early stage. Our
approach will involve a combination of universal support, such as
the new baby box, and elements of targeted support for low income
families, such as the
BSG. The
BSG will give families
on low incomes some additional money when their children make
transitions in the early years, adding to the family budget and
avoiding the need for borrowing.

We have heard from families living on low incomes about the
frustration and hardship they experience because the current grant
no longer provides support for second or subsequent children. The
reality for low income families is that many ofthe costs associated
with having a child are not 'one-off' expenses, but rather recur
when they have second or subsequent children. This change to
entitlement has particularly affected vulnerable people, who are
less likely to be able to plan ahead, and larger families.

We recognise that the disadvantages of poverty affect children,
not just at birth, but also at other key stages of their young
lives. So we will support them and their parents through early
transitions, reducing the need for debt and money related stress,
and the consequences these can have for families. By supporting
families through the important transitions as children enter the
education system, we can help reduce disadvantages facing children
from the poorest households and contribute towards closing the
attainment gap.

In this consultation, we are considering how the new
BSG will work in
practice, and how it will fit with other support provided during
early years.

Operation of Existing Sure Start Maternity Grant

Notes for the above graphic

An infographic showing key facts on the Sure Start Maternity
Grant in Scotland. In 2014/15 the UK government spent £34
million on funeral payments, of this £3 million was in
Scotland.

Sources:DWP Outturn & Forecast: Summer Budget 2015

The existing
SSMG provides
£500 to qualifying low income families on the birth of their
first child. The
SSMG uses an
award of certain
DWP
benefits to determine that someone is on a low income. These
are:

Income Support

Income-based Job Seekers Allowance

Income-related
ESA

Pension Credit

Child Tax Credit, at a rate higher than the family
element

Working Tax Credit that includes a disability or severe
disability element

Universal Credit

There were an estimated 10,500 applications in Scotland in
2014/15, resulting in 6,000 awards, with an estimated expenditure
of £3 million for the year.

We have been told by service users and their representatives
that the existing benefit is viewed positively in so far as it is
relatively straightforward and meets an identified need. However,
we have also heard that information about the grant is poor, that
narrowing of the entitlement to the first child was unfair, and
that the application window is too short. More information can be
found in our publication on
Creating
A Fairer Scotland.
[47]

Proposals for identifying eligible families

We are considering whether there are particular groups that the
BSG can support and how
those groups can best be reached through eligibility criteria. For
example, looked after children and young parents. We are also
considering the roll out of Universal Credit and the effect that
will have on eligibility. Some families who do not work enough
hours to qualify for Working Tax Credits will be eligible for
Universal Credit, and therefore for the
BSG once they
transition. However, some families who would currently qualify for
the
BSG under Tax Credits
will not qualify under Universal Credit, because the upper
threshold for Universal Credit is lower.

We recognise that social security in Scotland must be delivered
in a difficult financial context. This means that we have to
allocate our financial resources where the need is greatest, and
where they can have greatest impact. That is why we are thinking
about which low income families the
BSG should be paid to
and how best to identify these families. For example, it could be
paid to:

Families who are on slightly higher incomes, eg who are at or
below the living wage of £8.25 an hour, which equates to an
income of approximately £16000 per year for one adult
working full time. This would be around 37% of all children but
would be more complicated to administrate, as incomes
fluctuate

Anyone in receipt of any Tax Credit or Universal Credit,
which can include families with incomes of over £30,000 in
some circumstances. This is closest to the current eligibility
for the
SSMG,
although there are currently limitations on the Tax Credit
criteria that this would remove, simplifying eligibility. It
would cover around 45% of all children

QuestionsWhat are your views on who should receive the Best Start
Grant?

Proposals on identifying who is responsible for a child

Currently a claimant is considered to be responsible for a child
if they receive Child Benefit for that child or, where there is no
Child Benefit, if they live with the child.

The
SSMG can
currently be awarded more than once for the same child in some
limited circumstances. The
BSG will be a longer
term benefit than the current
SSMG, and
will follow the child as they progress through early years.
Children may move nursery and school reasonably often. Because of
this difference, we are considering making each of the three
payments payable only once per child, although it may be necessary
to make exceptions in certain circumstances.

QuestionsShould we continue to use the same system to determine who
is responsible for a child for the purposes of the
BSG
application?

Yes
No

Please explain why

Do you agree that each of the three
BSG payments should
only be made once for each child?

Yes
No

If no, what exceptions would you make to this rule?

Proposals on the maternity payment

The
BSG will re-introduce
payments for second and subsequent children, but at a lower rate,
so we will need to identify whether a child is the first in the
household. The
SSMG does
this by identifying whether there is a child in the household
already under the age of 16 rather than looking at family
relationships.

Currently, in order to receive the
SSMG, a
certified health professional must confirm that the mother has
received medical advice. There is a clear correlation between
poorer pregnancy outcomes, including higher rates of maternal and
infant deaths in women who book later for antenatal care, attended
infrequently or never attend for care. At present in Scotland,
women and babies who are at the greatest risk of poor health
outcomes are the least likely to access it. We are keen to
reinforce the importance of attending for antenatal care and
therefore plan to retain the requirement for mothers to have
received medical advice in order to qualify for the
BSG maternity
payment.

QuestionsShould we continue to use the same method as the
SSMG to
determine whether a child is the first child in a
household?

Yes
No

Please explain why

If no, what alternative method should we use?

Do you agree that we should retain the requirement to
obtain advice from a medical professional before making a maternity
payment?

Yes
No

Please explain your answer

Proposals on the nursery payment

The
BSG will pay low income
families £250 to support them as their children begin early
learning and childcare. We want to provide support when people need
it, but the practicalities may be difficult as everyone's situation
is different and plans for nursery and childcare can change right
up until the last minute. We would like to understand the pressures
that families face, when they face them and how the payment can add
most value, without becoming too complicated.

There are a range of early learning and childcare options
available to parents in Scotland, funded both publicly and
privately. There are also a range of childcare settings, such as
child minders and informal childcare.

We need to work out what conditions a family would need to meet
to qualify for the nursery payment. Every child in Scotland is
entitled to Free Early Learning and Childcare from age three
onwards, with some children qualifying at age two. One option is to
use entitlement for a funded early learning and childcare place as
the trigger for entitlement to the nursery element of the
BSG.

QuestionsAre there other points during the first five years of a
child's life when families face greater pressure than at the start
of nursery (other than birth and the start of school)?

What are your views on defining 'the start of nursery' as
the point of entitlement to a funded early learning and childcare
place, for the purposes of making the second payment?

Are there any particular issues related to the nursery
payment that you think we should consider?

Proposals on the school payment

The
BSG includes a third
payment when children begin school for the first time. For some
children this will be at the age of four, while for others it will
be at the age of five, depending on the month of their birth.
Children will not always follow the same pathway into school, and
will not always begin their education at the same age. We want to
make sure that the benefit design acknowledges and accommodates
these differences.

QuestionsAre there any particular issues related to the school
payment that you think we should consider?

Should the school payment be payable to all eligible
children who begin primary school for the first time in Scotland,
or should an upper age limit be included?

Proposals for the application process

The current
SSMG has a
single application for a single payment. The
BSG will be made up of
three payments over a five year period. Some families will not
receive the initial maternity payment, but will then meet criteria
for later payments, either because of a change of circumstances or
because they were eligible but did not apply for the initial
payment. We think that the three payments should be treated
separately because of the time lapse between them and the
likelihood that people's circumstances will change.

For the existing
SSMG, the
claim must be made within the prescribed timeframe. The grant can
be claimed from 29 weeks into the pregnancy until three months
after birth. We have heard concerns that the relatively short
application window following birth contributes to difficulty in
accessing the grant, particularly for those who qualify through
Child Tax Credit which can only be applied for after birth. We
propose to extend the application window for the first payment to
six months after birth.

There will be some overlap in eligibility between the
BSG and Healthy Start
vouchers, powers over which are also devolved to Scottish Ministers
by the Scotland Act 2016. Healthy Start vouchers are intended to
improve nutrition for mothers and children. There is an opportunity
to streamline the provision of information about and application
processes for the two benefits.

QuestionsWhat are your views on our proposals in relation to the
BSG application
process?

What are your views on establishing an integrated
application process for the
BSG and Healthy
Start?

What are the advantages and disadvantages of this
approach?

Proposals for alternative support

Currently the
DWP
makes payments to the claimant, via bank details specified in the
application form. While we know that providing items rather than
money without a choice would be inconsistent with some views on
dignity and respect, a choice of alternative provision could add
value in some cases. For example, a catalogue of items for people
who can't travel to shops, adapted items for disabled people or
help in the house rather than a cash payment.

For some families, managing a large lump sum could present a
challenge. A catalogue of items could also be useful for a support
worker who is helping someone to make choices. The collective
purchasing power involved in this approach could also offer value
for money if take up were sufficient.

However, we understand the importance of flexible support to
service users and that any alternative forms of support should
remain optional.

QuestionsWould the option to receive items rather than a cash
payment as part of the
BSG have
benefits?

Yes
No

Please explain why

Proposals for Improving take up

We know that there is a patchy awareness of the
SSMG and that
take up is low. It is important that people are able to access and
receive the support that they are entitled to. We think that we can
improve take up of the
BSG by ensuring that it
is promoted by services commonly used by people who will need
support, for example the family nurse partnership and health
visitors. We also think that the new baby box which will be
available for all new mothers will be a good opportunity to raise
awareness of the
BSG.

Questions

Which services should promote awareness of the
BSG to ensure that
claimants know about it at the relevant time?

11. Discretionary Housing Payment

Summary

Discretionary Housing Payments (
DHPs)
are currently made by local authorities, with guidance from
DWP,
and are aimed at helping people who need further financial
assistance to meet their housing costs.

Individuals whose Housing Benefit or Universal Credit has
been reduced as a result of welfare reforms such as the 'bedroom
tax', the benefit cap or Local Housing Allowance can be awarded a
DHP.

We are proposing that
DHPs
continue to operate in the same way once the Scottish Parliament
has full control over all
DHP
funding.

Notes for the above graphic

An infographic showing key facts on discretionary housing
payments in Scotland. In 2014/14, £50.5 million was spent on
DHPs and 118,000 DHPs were awarded. A portion of this was spent to
counter the 'bedroom tax'. The average award was £429, up
from £335 in 2013/14. The Scottish Government provided the
majority of the funding (74%) in 2014/15). Local authorities
received 132,000 DHP applications in 2014/15, of which 130,000 were
decided.

Sources: DWP benefit expenditure by Local Authority from 2000/01
to 2014/15; Scottish Government Discretionary Housing Payments in
Scotland: 1 April 2014 to 31 March 2015

Operation of the existing benefit

The Scotland Act 2016 gives the Scottish Parliament legislative
competence for
DHPs.
DHPs are
currently made by local authorities, under guidance from
DWP,
and are aimed at helping people who need further financial
assistance to meet their housing costs. Local authorities can award
DHPs to
individuals who are entitled to Housing Benefit or Universal Credit
where it includes a housing element for rent.

DHPs can
be awarded to tenants in the private and social rented sectors, or
those who have yet to take up a tenancy. In addition to rental
costs
DHPs can
be awarded to cover other housing related costs including rent in
advance, deposits and removal costs. Individuals whose Housing
Benefit or Universal Credit has been reduced as a result of welfare
reforms such as the 'bedroom tax', the benefit cap or Local Housing
Allowance can be awarded a
DHP. Local
authorities have discretion over how they assess claims for
DHPs and
how much is awarded. Guidance for local authorities is provided by
DWP
DHP Guidance 2016.[48]

As part of the our Fairer Scotland consultation, the Scottish
Government asked about people's experience of
DHPs and
whether they worked well as a form of financial assistance. In
general the feedback was positive and we are therefore proposing
that
DHPs
continue to operate in the same way once the Scottish Parliament
has full control over
DHPs.

QuestionsCould the way that
DHPs are
currently used be improved?

Yes
No

Please explain why

Could the administration of
DHP
applications be improved?

Yes
No

Please explain why

Does the guidance for local authorities on
DHPs need
amending?

Yes
No

Please explain why

12. Job Grant

Summary

The Scottish Government proposes to introduce a new Job Grant
to help young people aged 16-24 who are returning to work after a
period of six months unemployment.

This would be a payment of £100, or £250 for
those who have children.

We plan to supplement this cash payment with free bus travel
for a three month period.

The Scottish Government recognises that young people are the
future for our economy, and that future economic growth will be
dependent on our being able to support as many young people as
possible into rewarding, sustainable, long-term careers. That is
why we are keen to extend further support to young people returning
to work after a period of unemployment, beyond the support that
will be offered through new devolved employment services. The Job
Grant will supplement new and existing support for young people to
enter the workplace.

A number of academic studies suggest that unemployment can have
a damaging effect on young people's earnings potential for many
years afterwards. The longer the period of unemployment, the
greater the future wage penalty tends to be.

Proposals for the Job Grant

The Job Grant is intended to help smooth the young person's
transition back into work. It would help cover some initial basic
costs, particularly with bus travel. We estimate that this will
help around 6,500-8,500 young people aged 16-24 to return to work
and will have a positive effect on work incentives. It would be a
payment of £100, or £250 for those with children, and
would be supplemented with free bus travel for a three month
period.

QuestionsWhat should the Scottish Government consider in developing
the Job Grant?

13. Universal Credit flexibilities

Summary

The Scotland Act 2016 provides Scottish Ministers with some
flexibilities over the way Universal Credit (
UC) is calculated and
paid. These include changing the frequency of payments, splitting
payments between members of a household instead of a single
payment, and paying landlords direct for housing costs in
Scotland. This will enable us to ensure that the implementation
of
UC will be better
suited to our needs.

We have already committed to enabling people to have the
option of the rent element being paid direct to social landlords
and the option of the frequency of their
UC payments being
twice monthly instead of calendar monthly.

We are now consulting on two other potential options:
i. extending payment of the rent element direct to
landlords for tenants in the private rented sector
and ii. providing the option to split the household payment
between members of a household.

Introduction

UC is a new single
payment for working age people introduced by the
UK Government.
UC is intended to
improve work incentives, simplify the benefit system and reduce
fraud and error.
UC remains reserved to
the
UK Government, however
the Scottish Government have some administrative powers to change
payment arrangements for
UC.

Operation of existing benefits

The main differences between
UC and other current
welfare benefits are:
UC will be available to
people who are in work and on a low income, as well as to those who
are out of work; most people will apply online and manage their
claim through an online account; claimants will usually receive one
single monthly payment per household, paid into a bank account; and
support with housing costs (rent) will go directly to the claimant
as part of their monthly payment.

Proposals for Universal Credit flexibilities

The Scottish flexibilities are being introduced to make it
easier for claimants to manage their
UC payments. These
changes are intended to give the claimant more choice and control
over their
UC payments. Draft
regulations for the first two flexibilities are being written and a
further technical consultation is planned for these.
These are:

Having the option of being paid
UC twice a month
rather than monthly

Having the option of the rent element being paid direct to
social landlords

We also have the potential to introduce other flexibilities
including the opportunity to offer tenants in the private rented
sector the same choice of having their rent paid directly to their
landlord and the power to vary the existing plans for single
household payments of
UC. This means that
payments could be split between members of a household rather than
a single household payment. These are the proposals we want to ask
about in this consultation.

DWP are
currently able to split payments in certain exceptional cases. This
is technically challenging however and requires detailed knowledge
about the family situation and who has lead responsibility for
family costs and other bills and payments. We do not yet know if
DWP
would be able to introduce changes of this scale to their current
systems. We will use the findings from this consultation to inform
our discussions with them.

QuestionsShould the choice of managed payments of rent be extended
to private sector landlords in the future?

Yes
No

Please explain why

Should payments of Universal Credit be split between
members of a household?

Yes

No

Please explain why

If Yes, please indicate if you think the default position should
be:

a) automatic payments to individuals, with the option to choose
a joint payment